30 slides from Smartstop Self Storage Reit's conference presentation, Nov 13, 2020
Slide 1: NAREIT Presentation November 2020
NAREIT Presentation November 2020 Exhibit 99.2
Slide 2: Disclaimer & Risk Factors
Disclaimer & Risk Factors Certain of the matters discussed in this investor presentation constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can generally be identified by our
Slide 3: Additional Disclaimer & Risk Factors
Additional Disclaimer & Risk Factors Additional Information and Where to Find It In connection with the proposed merger, SmartStop intends to file a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”) that will include a proxy statement of SST IV and will also
Slide 4: Today's Presenters
Today’s Presenters H. Michael Schwartz Founder & Executive Chairman Chairman since March 2013 Founder and creator of SmartStop® Self Storage brand and platform 30+ years of real estate, securities and corporate financial management experience Michael McClure Chief Executive Officer CEO since June 20
Slide 5: SmartStop at a Glance
SmartStop at a Glance 10th Largest Self Storage Company in the U.S. 11.2 Million Owned and Managed Rentable Square Feet 148 Owned and Managed Self Storage Facilities $1.7 Billion Self Storage Assets Under Management $4.0 Billion Historical Self Storage Transaction Activity 390+ Employees SmartStop S
Slide 6: Self Storage Sector Is Highly Attractive
Self Storage Sector Is Highly Attractive Fragmented market with opportunity to consolidate US market share by square footage(2) Source: NAREIT Annual Returns by Property Sector and Subsector 1994 – 2019, Inside Self Storage. Total U.S. square footage of 1.898 billion per 2020 Self-Storage Almanac. N
Slide 7: Store Branding
Store Branding Brand Awareness Strong and Valuable Brand Identity Well-Known Brand Name Brand Protection Recognizable Signage and Colors SmartStop® Brand Appearances Registered trademarks in U.S. / Canada 250 U.S. / Canadian domain names Continued investment in brand and marketing translates to cust
Slide 8: Major Company Milestones
Major Company Milestones Track Record Of Creating Shareholder Value NOVEMBER 2005 H. Michael Schwartz acquires first ten self storage properties MARCH 2008 SST, first public non-traded REIT entirely focused on self storage, declared effective and begins offering shares at $10.00 SEPTEMBER 2009 Self
Slide 9: SmartStop Self Storage REIT, Inc.
al, SmartStop Self Storage REIT, Inc. .. The Smarter Way to Store!®
Slide 10: Investment Highlights
Best-In-Class Operator And Technology Platform Demonstrated Ability To Grow Externally Conservative And Diversified Capital Structure Experienced Management Team And Board High Quality Properties In Key Growth Markets Investment Highlights 1 2 3 4 5 Naples, Florida
Slide 11: Owned & Managed Portfolio Overview
Owned & Managed Portfolio Overview 148 Properties Owned & Managed In US & Canada 62% Concentration In Top MSAs(1) 103K Average 3 Mile Radius Population(2) Note: Portfolio as of 9/30/2020 and includes all operational properties owned and managed by SmartStop. Determined based on largest US MSAs and T
Slide 12: High Quality Properties in Key Growth Markets
High Quality Properties in Key Growth Markets Toronto, ONT Phoenix, AZ Orlando, FL Los Angeles, CA San Diego, CA Charlotte, NC
Slide 13: Concentration In Top Growth Markets
Concentration In Top Growth Markets Florida Avg. 3 Mi. Median HHI ($000s)(1) # of Properties 25.3% 24 5.7% 149.4 20.6% 17 2.0% 79.6 Source: Company internal data. Note: Data presented represents SmartStop’s existing owned portfolio only, prior to pending merger with SST IV. Median household income a
Slide 14: Rents and Demographics Reflect Strength of Property Locations
Q3 2020 Same Store Rent / SF(1) Percentage In Top 25 MSAs(2) 3 Mile Median Household Income (000s)(3) 3 Mile Population (000s)(3) Rents and Demographics Reflect Strength of Property Locations Sources: SNL, Company internal data, Ontario Ministry of Finance, Company Filings, Evercore Storage Demograp
Slide 15: Toronto: 3rd Largest City In US and Canada
Toronto would be the 3rd most populous city in the US, while claiming strong projected population growth and least saturated self storage market amongst its American peer cities Square Feet Per Capita(2) 2020E – 2026E Population Growth Projections(1) 10 Year Track Record In 3rd Largest City In US an
Slide 16: Development Case Study: Stoney Creek, ONT
Development Case Study Stoney Creek, ONT (Toronto MSA) – Ground Up Development Delivered in June 2018(1) Quickly gained occupancy given strong Toronto storage fundamentals, strong asset quality and desirable location Lease-up resilience during global pandemic Partially opened in June 2018, fully ope
Slide 17: Q3 2020 & COVID Update
Q3 2020 & COVID Update Source: Company filings. Q3 2020 Highlights COVID Operational Update Strong same store results compared to Q3 2019 Revenues increased 3.3% Operating expenses increased 0.6% NOI increased 4.7% Average same store physical occupancy increased to 91.7% compared to 89.8% in Q3 2019
Slide 18: Best In Class Operating Performance
Best In Class Operating Performance Q3 2020 YoY SS Revenue Growth Q3 2020 YoY SS NOI Growth Q3 2020 YoY SS Occupancy Growth(1) Q3 2020 Ending Same Store Occupancy Source: Company data and filings. Note: SmartStop represents standalone entity prior to pending merger with SST IV. Reflects year-over-ye
Slide 19: Industry Leader In Customer Experience
Ability to search for and reserve units at one of SmartStop’s 140+ locations Integrated into revenue management system to update pricing and occupancy real time Online Reservations Industry Leader In Customer Experience Technology-driven platform gives SmartStop the ability to meet customers’ unique
Slide 20: Sophisticated Operating And Analytics Technology
Sophisticated Operating And Analytics Technology Optimization of rental rates, discounts, and incentives driven by scientifically-based, proprietary pricing models Proprietary competitive rate analysis allows dynamic and real-time pricing based on forecasted future demand Evaluation and implementati
Slide 21: Multiple External Growth Strategies
Multiple External Growth Strategies Ground Up Development Certificate of Occupancy Lease-Up Expansion / Repositioning High Occupancy Stabilized Growth Income + Growth Income
Slide 22: SmartStop JV Relationship With SmartCentres
SmartStop JV Relationship With SmartCentres Joint Venture Summary 50/50 joint venture with SmartCentres (TSX: SUR.UN), one of Canada’s largest fully-integrated REITs Provides exclusive right in certain markets to develop self storage facilities at multiple SmartCentres shopping centers Sets foundati
Slide 23: Active Consolidation Creates Scale & Efficiency
SSGT portfolio – physical occupancy and total revenue since acquisition Active Consolidation Creates Scale & Efficiency Demonstrated ability to acquire companies with embedded growth $ Millions (2) (1) (3) (3) (3) (3) (3) On November 10, 2020, SmartStop announced it would be merging with Strategic S
Slide 24: Conservative And Diversified Capital Structure
Conservative And Diversified Capital Structure NAV / Share $10.40 Debt + Pref / TEV(1) 54% Dividend Yield (2) 5.8% Wtd. Avg. Interest Rate(3) 3.7% Debt Maturity Schedule(4) Capital Stack Note: Capital structure as of 9/30/20 per Company filings. SmartStop represents standalone entity prior to pendin
Slide 25: $200 Million Series A Convertible Preferred Issuance
$200 Million Series A Convertible Preferred Issuance Transaction Summary October 29, 2019 – SmartStop entered into a purchase agreement with Extra Space Storage Initial convertible preferred issuance of $150 million on October 29, 2019 and additional draw of $50 million on October 26, 2020 Coupon of
Slide 26: Decades of Collective Industry Experience
Decades of Collective Industry Experience Nicholas Look General Counsel 3 Years Storage Experience Board of Directors Executive Team Joe Robinson Chief Operations Officer 11 Years Storage Experience H. Michael Schwartz Founder & Executive Chairman 16 Years Storage Experience Michael McClure Chief Ex
Slide 27: SmartStop Self Storage REIT, Inc.
al, SmartStop Self Storage REIT, Inc. .. The Smarter Way to Store!®
Slide 28: Reconciliation: Net Income to Net Operating Income
Reconciliation: Net Income to Net Operating Income $Thousands
Slide 29: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted Funds from Operations (“FFO”) and FFO, as adjusted Funds from operations (“FFO”) is an industry wide metric promulgated by the National Association of Real Estate Investment Trusts, or NAREIT, which SmartStop believes to be an appropriate
Slide 30: Additional Information Regarding NOI, FFO & FFO, as adjusted
Additional Information Regarding NOI, FFO & FFO, as adjusted Net Operating Income or (“NOI”) NOI is a non-GAAP measure that SmartStop defines as net income (loss), computed in accordance with GAAP, generated from properties before corporate general and administrative expenses, asset management fees,